Creating Sustainable Value through a Unique Business Model

Utilizing four strengths, Fujitec supplies a full line of products through an integrated structure covering all aspects, from R&D to maintenance and modernization. Through this unique business model, we respond to diverse needs from around the world and strive to create sustainable value.

Investments for Sustainable Growth

Human Resources Development

Capital R&D Investment Investment

Research & Sales Manufacturing Installation Maintenance Modernization development

Fujitec’s 4 Strengths

1 Global 2 Quality 3 Specialist 4 Technology Seeking unified global business Establishing an integrated quality As a specialized manufacturer of Fujitec delivers safe, reliable and management structure that spans development, Fujitec operates transportation systems, Fujitec comfortable transportation systems from development and design to businesses in 24 countries and installation and maintenance, produces products that are a step through the continuous develop- Fujitec continues to strengthen its regions. ahead of the times. ment of knowledge and technology. reputation around the world.

2 Results in Ended March 31, 2018

Safety and Net Sales Reliability ¥168,795 million

Comfort Operating income

¥10,665 million Values That Fujitec Provides to Society Profit attributable to owners of parent Beautiful and ¥8,857 million Functional Cities

Return on equity (ROE) Contribution to Local 9.2% Communities

ANNUAL REPORT 2018 FUJITEC CO., LTD. 3 Integrated Structure

We efficiently produce a full line of safe, reliable and comfortable products such as , escalators, moving walks and other transportation systems through an integrated structure that covers design, development, manufacturing, sales, installation, maintenance and modernization. Numerous products brought forth through long-accumulated technologies and knowledge have earned the deep trust and support of customers around the world. Feedback from customers is reflected in future design and development to produce even better products.

Research & Sales Manufacturing Installation Maintenance Modernization Development

Global Supply Chain

Fujitec was the first company in the Japanese and escalator industry to venture overseas, establishing Fujitec (HK) Co., Ltd. in 1964. Since then, we have been proactively promoting global business, which encompasses six R&D centers and 10 manufacturing bases in 24 countries and regions. Each base is connected by our sales order management system and global design division to establish a global supply chain network.

Huasheng Fujitec Elevator Co., Ltd. Manufacturing, marketing, installation, maintenance and repair of elevators Fujitec Korea Co., Ltd. Fujitec America, Inc. Huasheng Fujitec Escalator Co., Ltd. Manufacturing, marketing, Manufacturing, marketing, installation, maintenance and Manufacturing, marketing, installation, installation, maintenance repair of elevators and repair of elevators maintenance and repair of escalators Fujitec Shanghai Sourcing Center Co., Ltd. Head Office Big Wing Manufacturing of equipment for elevators Development and manufacturing of elevators

Big Step Fujitec India Private Ltd. Development and manufacturing Manufacturing, marketing, installation, of escalators maintenance and repair of elevators Shanghai Tecky Trading Co., Ltd.

Fujitec (HK) Co., Ltd. Fujitec Co., Ltd. Manufacturing, marketing, installation, Manufacturing, marketing, maintenance and repair of elevators installation, maintenance R&D centers and repair of elevators Fujitec Shanghai Technologies Co., Ltd. Manufacturing bases Research and development of equipment for elevators Major sales bases Logistics base

4 Financial Highlights

Thousands of Fiscal years ended March 31 Millions of yen U.S. dollars 2014 2015 2016 2017 2018 2018 Net sales ¥147,054 ¥165,297 ¥177,128 ¥167,442 ¥168,795 $1,592,406 Domestic 58,338 61,508 60,381 62,798 64,935 612,595 Overseas 88,716 103,789 116,747 104,644 103,860 979,811 Operating income 12,871 13,488 14,449 12,687 10,665 100,613 Profit attributable to owners of parent 7,664 8,356 8,807 8,564 8,857 83,557 Comprehensive income 19,450 19,343 6,533 6,530 10,907 102,896 R&D expenses 1,976 2,023 2,179 2,302 2,323 21,915 Capital investment 1,867 4,071 4,138 4,149 2,175 20,519 Depreciation and amortization 2,237 2,373 2,748 2,751 2,915 27,500 Acquisition of property, plant and equipment 2,007 3,867 4,210 3,610 2,973 28,047 Total assets 154,265 179,856 171,872 173,007 183,218 1,728,472 Net assets 93,501 104,620 100,406 103,847 111,822 1,054,925 Cash flows from operating activities 9,294 10,753 8,932 14,360 11,870 111,981

Cash flows from investing activities (2,655) (619) (5,319) (6,957) (5,346) (50,434) Cash flows from financing activities (3,823) (3,225) (11,532) (6,757) (3,858) (36,396) Cash and cash equivalents at end of year 20,903 30,602 21,833 20,910 24,043 226,821 Net income per share (exact yen/dollars) 82.32 90.84 109.36 106.35 109.82 1.04 Diluted net income per share (exact yen/dollars) 82.31 90.79 109.28 106.26 109.73 1.04 Net assets per share (exact yen/dollars) 912.40 1,074.82 1,102.66 1,148.36 1,243.46 11.73 Cash dividends per share (exact yen/dollars) 22.00 24.00 30.00 30.00 35.00 0.33

Shareholders’ equity ratio (%) 54.8 51.9 51.6 53.5 54.8 ― Return on assets (ROA) (%) 5.5 5.0 5.0 5.0 5.0 ― Return on equity (ROE) (%) 9.8 9.4 9.7 9.4 9.2 ― Order backlogs 143,881 166,745 195,339 184,738 199,602 1,883,038 Domestic 40,692 47,779 55,475 57,200 60,431 570,104 Overseas 103,189 118,966 139,864 127,538 139,171 1,312,934

Number of employees (persons) 8,539 9,057 9,486 9,832 9,931 ― Domestic (persons) 2,714 2,758 2,824 2,875 2,919 ― Overseas (persons) 5,825 6,299 6,662 6,957 7,012 ―

1. U.S. dollar amounts are translated from Japanese yen, for convenience only, at the rate of ¥106 to US$1.00, which was the exchange rate on March 31, 2018. 2. During the fiscal year ended March 31, 2015, the accounts of Fujitec M&E Sdn. Bhd. were newly included in the consolidation. 3. During the fiscal year ended March 31, 2016, the accounts of Fujitec Lanka (Private) Ltd. were newly included in the consolidation. 4. During the fiscal year ended March 31, 2016, the accounts of Fujitec (Thailand) Co., Ltd. were removed from the consolidation. 5. During the fiscalyear ended March 31, 2018, the accounts of Fujitec Deutschland GmbH were removed from the consolidation because the Company transferred its entire holdings on February 15, 2018. 6. Net income per share amounts are computed based on the weighted average number of shares outstanding during each fiscal year. Net assets per share amounts are computed based on the number of shares outstanding at each fiscal year-end.

ANNUAL REPORT 2018 FUJITEC CO., LTD. 5